BlockBeats news: On January 10, Pump.fun announced a restructuring of its creator fee mechanism. Co-founder Alon Cohen stated on the X platform that while the current Dynamic Fees V1 significantly boosted platform activity in the short term, it might distort the incentive structure in the long run and has failed to foster sustainable market behavior.
Cohen pointed out that the mechanism encourages low-risk, high-volume token issuance while suppressing high-risk trading activities that are critical to the platform. "Traders are the core source of liquidity and trading volume on the platform. This structure is dangerous," he said.
He recalled that the mechanism initially showed significant results when it was launched, attracting a large number of new creators who boosted popularity through live streaming and other methods. The trading volume on Pump.fun's bonding curve even doubled within weeks, creating one of the strongest on-chain environments at the beginning of 2025. However, the enthusiasm quickly faded, exposing underlying structural issues.
As part of the first-phase adjustment, Pump.fun will introduce a creator fee distribution mechanism, allowing creators or communities to take over (CTO) administrative rights after a token is launched, and distribute fees proportionally to up to 10 wallets. It will also support transferring token ownership and revoking update permissions. Cohen emphasized that Pump.fun team members will never charge any creator fees under any circumstances. He stated that this feature is "completely for the players on the front lines," with fees being claimable at any time and unclaimed fees will not expire.